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HF2653 (Legislative Session 94 (2025-2026))

Fees and expenses awarded to prevailing party if municipality's position was not substantially justified.

Related bill: SF617

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to allow individuals or parties who prevail in civil cases against municipalities to be awarded attorney fees and expenses if the municipality's position was not reasonably justified. This aims to provide financial relief to individuals or parties that have had to expend resources challenging unjustified positions by municipalities.

Main Provisions

  • Definitions: The bill sets forth definitions for terms such as "expenses," "fees," "municipality," and "substantially justified."

    • "Expenses" and "fees" include reasonable attorney fees and other charges related to legal representation.
    • "Substantially justified" indicates that the municipality's position must have a reasonable basis in law and fact.

  • Awarding Fees and Expenses:

    • Courts are mandated to award fees and expenses to parties that win lawsuits against municipalities if it is determined that the municipality's stance lacked justification.
    • Special circumstances could prevent such awards if they are deemed unjust.
    • The court can reduce or deny fees if the winning party's actions unnecessarily delayed the proceedings.

  • Application Process:

    • Parties seeking compensation must file an application within 30 days after the final judgment.
    • The application must include evidence that the party prevailed and that the municipality’s position was not substantially justified.

  • Other Provisions:

    • The bill clarifies that this does not restrict recovery of costs and fees under other laws.
    • It specifically excludes tort actions from these provisions.

Significant Changes to Existing Law

This bill introduces a new provision in the Minnesota Statutes which incentivizes municipalities to maintain justified legal positions by imposing financial consequences otherwise. There is no existing statute providing a similar comprehensive framework for covering legal costs against municipalities when their legal positions are not justified.

Relevant Terms

  • Civil Actions
  • Attorney Fees
  • Legal Expenses
  • Prevailing Party
  • Municipality
  • Substantially Justified

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025HouseFloorActionIntroduction and first reading, referred toJudiciary Finance and Civil Law
March 23, 2025HouseFloorActionIntroduction and first reading, referred toJudiciary Finance and Civil Law

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines 'expenses' as used in reference to fees in civil cases involving municipalities.",
      "modified": []
    },
    "citation": "15.471",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines 'municipality' as used in the context of civil actions involving fees and expenses.",
      "modified": []
    },
    "citation": "466.01",
    "subdivision": "subdivision 1"
  }
]

Sponsors